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American Fuel Economy Just Hit a Record, Thanks to EVs and Hybrids

The EPA’s numbers show the biggest improvements in almost a decade, despite America’s thirst for ever-larger trucks and SUVs.

Electric cars.
Heatmap Illustration/Getty Images

The U.S. Environmental Protection Agency is out with its annual Automotive Trends Report for 2022 model-year vehicles, and the numbers are some of the best it’s seen. Average emissions are at a record low and fuel economy is at a record high — and according to preliminary 2023-model-year data, those trends will continue into the new year.

Overall, the EPA says average real-world CO2 emissions for new vehicles sold in 2022 dropped by 10 grams of carbon dioxide per mile for an average of 337 g/mile, the lowest the agency has recorded. On the other side, fuel economy averages are at 26 miles per gallon, an improvement of 0.6 MPG and another record high for new vehicles sold.

Of the five categories of vehicles tested, four are the most fuel efficient the agency has seen since its inception, with crossovers (what the EPA classifies as “car SUVs”) showing the biggest drop in emissions at 27 g/mile, followed by pickup trucks, sedans/wagons, minivans, and SUVs.

The not-so-good-news is the EPA also recorded its highest number of SUVs, pickups, and minivans/vans sold since 1975, accounting for a whopping 63% of new vehicles that rolled off dealer lots. And across the board, 2022 vehicles were also the heaviest and largest ever sold.

This is primarily due to two things: First, automaker safety is at an all-time high, swelling cars with better crumple zones, dozens of airbags, and scads of active safety systems. Second, Americans just like big vehicles with more power — what the EPA calls “market trends.” That likely won’t change with 2023’s numbers.

Thankfully, there will be more EVs and hybrids coming to market, which should help to offset some of the emissions. Electrics helped reduce average emissions by 22 g/mile in 2022 and increased overall fuel economy by 1.2%, and projections for the next report show an even bigger boost to 26.9 MPG in 2023.

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Sparks

Koloma Strikes New Hydrogen Exploration Deal in the Philippines

The deal, shared exclusively with Heatmap, is the startup’s third in the oil-importing country.

A Koloma worker.
Heatmap Illustration/Koloma, Getty Images

Hydrogen fuel comes in myriad forms. There’s green hydrogen, which is extracted from water molecules using zero-carbon electricity. There’s blue hydrogen, derived from methane and scrubbed clean by carbon capture. And then there’s white hydrogen. Otherwise known as natural or geologic hydrogen, this type of hydrogen comes directly from naturally occurring deposits in the earth, can accumulate in considerable quantities and concentrations, and is highly energy-efficient to extract compared to manufacturing pathways such as electrolyzers and steam methane reforming.

It’s a seductive promise, but finding deposits with enough hydrogen to make the economics of exploration work is difficult. That’s where Koloma comes in. The startup uses a bespoke subsurface data set, which its founders developed over 20-plus years, to flag the areas most likely to hold sufficient hydrogen, after which they can extract it for power and derivative fuels.

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Sparks

Data Centers Will Use Enough Electricity to Power Every U.S. Household by 2035

The latest forecast from BloombergNEF raises its estimate for AI electricity demand by 83%.

A data center and power lines.
Heatmap Illustration/Getty Images

Energy analysts at BloombergNEF predicted last year that U.S. data center electricity demand would reach 106 gigawatts within the next decade. In its latest outlook, released Tuesday, the group increased its forecast by 83%, to 194 gigawatts — enough to light up 150 million homes, or roughly every single household in the country today.

Even that may be a conservative estimate. If data center developers were to max out the total number of the high-powered chips used to train and operate AI models forecast to be delivered by 2035, electricity demand would reach 229 gigawatts.

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Sparks

Microsoft Sustainability Chief Hounded by Protestors at Seattle Climate Week

“Microsoft, you can’t hide, we can see your dirty side!”

Melanie Nakagawa.
Heatmap Illustration/Getty Images, Katie Brigham

Protestors interrupted one of the final sessions of PNW Climate Week — a conference that brings together climate leaders across Washington, Oregon, and British Columbia — objecting to Microsoft’s rising carbon emissions from data centers and partnerships with oil and gas companies. The company’s Chief Sustainability Officer Melanie Nakagawa was having a one on one conversation with GeekWire climate reporter Lisa Stiffler at Seattle’s City Hall when protestors carrying signs reading “Microsoft’s AI pollutes” and other slogans began shouting from the audience.

I was there, having just moderated the prior panel on how to finance Washington’s clean energy ambitions. Early on there were some rumblings in the crowd from up front. “Climate leaders don’t build gas pipelines in Moses Lake,” was the first objection I heard clearly. It came shortly after Nakagawa kicked off the conversation by highlighting Microsoft’s partnership with sustainable aviation fuel startup Twelve, which recently opened its first commercial-scale SAF plant in Moses Lake, Washington. The tech giant has supported the project through a strategic investment from its Climate Innovation Fund, as well as an offtake agreement for the fuel that will help offset its emissions from employee travel.

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